GRANITE CONSTRUCTION INC (GVA) Stock Fundamental Analysis
NYSE:GVA - New York Stock Exchange, Inc. - US3873281071 - Common Stock - Currency: USD
GVA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 52 industry peers in the Construction & Engineering industry. GVA has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on GVA. These ratings could make GVA a good candidate for value investing.
1. Profitability
1.1 Basic Checks
GVA had positive earnings in the past year.
GVA had a positive operating cash flow in the past year.
Of the past 5 years GVA 4 years were profitable.
GVA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GVA has a better Return On Assets (4.25%) than 61.54% of its industry peers.
With a decent Return On Equity value of 12.45%, GVA is doing good in the industry, outperforming 63.46% of the companies in the same industry.
The Return On Invested Capital of GVA (6.25%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for GVA is significantly below the industry average of 16.67%.
The 3 year average ROIC (3.67%) for GVA is below the current ROIC(6.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 12.45% | ||
| ROIC | 6.25% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 3.07%, GVA perfoms like the industry average, outperforming 59.62% of the companies in the same industry.
GVA's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 5.00%, GVA perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
With a Gross Margin value of 14.93%, GVA perfoms like the industry average, outperforming 48.08% of the companies in the same industry.
In the last couple of years the Gross Margin of GVA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5% | ||
| PM (TTM) | 3.07% | ||
| GM | 14.93% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GVA is destroying value.
GVA has less shares outstanding than it did 1 year ago.
GVA has less shares outstanding than it did 5 years ago.
The debt/assets ratio for GVA is higher compared to a year ago.
2.2 Solvency
GVA has an Altman-Z score of 3.41. This indicates that GVA is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.41, GVA is doing good in the industry, outperforming 63.46% of the companies in the same industry.
The Debt to FCF ratio of GVA is 2.51, which is a good value as it means it would take GVA, 2.51 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GVA (2.51) is better than 73.08% of its industry peers.
GVA has a Debt/Equity ratio of 0.74. This is a neutral value indicating GVA is somewhat dependend on debt financing.
GVA has a Debt to Equity ratio of 0.74. This is comparable to the rest of the industry: GVA outperforms 48.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 2.51 | ||
| Altman-Z | 3.41 |
ROIC/WACC0.65
WACC9.69%
2.3 Liquidity
A Current Ratio of 1.57 indicates that GVA should not have too much problems paying its short term obligations.
GVA has a Current ratio of 1.57. This is in the better half of the industry: GVA outperforms 75.00% of its industry peers.
A Quick Ratio of 1.44 indicates that GVA should not have too much problems paying its short term obligations.
GVA has a Quick ratio of 1.44. This is in the better half of the industry: GVA outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.93% over the past year.
The Earnings Per Share has been growing by 32.75% on average over the past years. This is a very strong growth
Looking at the last year, GVA shows a quite strong growth in Revenue. The Revenue has grown by 11.42% in the last year.
The Revenue has been growing slightly by 6.57% on average over the past years.
EPS 1Y (TTM)27.93%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%104.76%
Revenue 1Y (TTM)11.42%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%4.06%
3.2 Future
Based on estimates for the next years, GVA will show a very strong growth in Earnings Per Share. The EPS will grow by 24.45% on average per year.
GVA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.46% yearly.
EPS Next Y37.33%
EPS Next 2Y26.81%
EPS Next 3Y24.45%
EPS Next 5YN/A
Revenue Next Year7.59%
Revenue Next 2Y6.81%
Revenue Next 3Y5.46%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.00, which indicates a rather expensive current valuation of GVA.
Based on the Price/Earnings ratio, GVA is valued a bit cheaper than 76.92% of the companies in the same industry.
GVA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 14.43, which indicates a correct valuation of GVA.
Based on the Price/Forward Earnings ratio, GVA is valued cheaply inside the industry as 88.46% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.76. GVA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22 | ||
| Fwd PE | 14.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GVA is valued cheaper than 80.77% of the companies in the same industry.
GVA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GVA is cheaper than 88.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.89 | ||
| EV/EBITDA | 12.41 |
4.3 Compensation for Growth
GVA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of GVA may justify a higher PE ratio.
A more expensive valuation may be justified as GVA's earnings are expected to grow with 24.45% in the coming years.
PEG (NY)0.59
PEG (5Y)0.67
EPS Next 2Y26.81%
EPS Next 3Y24.45%
5. Dividend
5.1 Amount
With a yearly dividend of 0.55%, GVA is not a good candidate for dividend investing.
GVA's Dividend Yield is rather good when compared to the industry average which is at 1.70. GVA pays more dividend than 86.54% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, GVA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
5.2 History
The dividend of GVA decreases each year by -0.19%.
GVA has been paying a dividend for at least 10 years, so it has a reliable track record.
GVA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.19%
Div Incr Years0
Div Non Decr Years33
5.3 Sustainability
18.40% of the earnings are spent on dividend by GVA. This is a low number and sustainable payout ratio.
DP18.4%
EPS Next 2Y26.81%
EPS Next 3Y24.45%
93.74
-0.38 (-0.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners117.4%
Inst Owner Change-0.01%
Ins Owners1.11%
Ins Owner Change4.19%
Market Cap4.10B
Analysts74.29
Price Target103.79 (10.72%)
Short Float %8.94%
Short Ratio6.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Yearly Dividend0.52
Dividend Growth(5Y)-0.19%
DP18.4%
Div Incr Years0
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)48.97%
Min EPS beat(2)-4.36%
Max EPS beat(2)102.29%
EPS beat(4)1
Avg EPS beat(4)12.33%
Min EPS beat(4)-30.91%
Max EPS beat(4)102.29%
EPS beat(8)4
Avg EPS beat(8)12.43%
EPS beat(12)6
Avg EPS beat(12)-129.32%
EPS beat(16)7
Avg EPS beat(16)-111.27%
Revenue beat(2)1
Avg Revenue beat(2)-0.02%
Min Revenue beat(2)-1.92%
Max Revenue beat(2)1.87%
Revenue beat(4)2
Avg Revenue beat(4)1.08%
Min Revenue beat(4)-1.92%
Max Revenue beat(4)6.23%
Revenue beat(8)4
Avg Revenue beat(8)1.63%
Revenue beat(12)7
Avg Revenue beat(12)0.74%
Revenue beat(16)8
Avg Revenue beat(16)-0.65%
PT rev (1m)0%
PT rev (3m)-1.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.45%
EPS NY rev (1m)0%
EPS NY rev (3m)2.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22 | ||
| Fwd PE | 14.43 | ||
| P/S | 1.02 | ||
| P/FCF | 13.89 | ||
| P/OCF | 9.41 | ||
| P/B | 4.13 | ||
| P/tB | 6.27 | ||
| EV/EBITDA | 12.41 |
EPS(TTM)4.26
EY4.54%
EPS(NY)6.5
Fwd EY6.93%
FCF(TTM)6.75
FCFY7.2%
OCF(TTM)9.97
OCFY10.63%
SpS92.25
BVpS22.71
TBVpS14.95
PEG (NY)0.59
PEG (5Y)0.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 12.45% | ||
| ROCE | 10.33% | ||
| ROIC | 6.25% | ||
| ROICexc | 8.85% | ||
| ROICexgc | 11.75% | ||
| OM | 5% | ||
| PM (TTM) | 3.07% | ||
| GM | 14.93% | ||
| FCFM | 7.32% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
ROICexc(3y)5.78%
ROICexc(5y)N/A
ROICexgc(3y)7.39%
ROICexgc(5y)N/A
ROCE(3y)6.06%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
F-Score7
Asset Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 2.51 | ||
| Debt/EBITDA | 2.24 | ||
| Cap/Depr | 110.44% | ||
| Cap/Sales | 3.49% | ||
| Interest Coverage | 9.15 | ||
| Cash Conversion | 132.39% | ||
| Profit Quality | 238.68% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 3.41 |
F-Score7
WACC9.69%
ROIC/WACC0.65
Cap/Depr(3y)135.78%
Cap/Depr(5y)115.36%
Cap/Sales(3y)3.7%
Cap/Sales(5y)3.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)27.93%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%104.76%
EPS Next Y37.33%
EPS Next 2Y26.81%
EPS Next 3Y24.45%
EPS Next 5YN/A
Revenue 1Y (TTM)11.42%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%4.06%
Revenue Next Year7.59%
Revenue Next 2Y6.81%
Revenue Next 3Y5.46%
Revenue Next 5YN/A
EBIT growth 1Y286.19%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year98.4%
EBIT Next 3Y33.81%
EBIT Next 5YN/A
FCF growth 1Y390.24%
FCF growth 3YN/A
FCF growth 5Y133.59%
OCF growth 1Y1398%
OCF growth 3Y175.18%
OCF growth 5Y32.58%